Oil is lower in Asia-Pac trade, WTI is last.....>

OIL: Oil is lower in Asia-Pac trade, WTI is last down $0.22 at $61.57 while

Brent is down $0.15 at $65.36. Oil dropped sharply after DoE Inventories showed

a build in headline crude stocks of 1.895mln bbls and a sharp rise of 3.414mln

bbls in gasoline stocks. While the build in headline crude stocks was below

estimates, it was the second gain in stocks in the last 12 weeks, indicating the

market may be turning. The gain in stocks in being attributed, at least

partially, to higher US production. EIA figures released yesterday showed

production rose to the highest levels since records begain in 1983 at 10.25mln

BPD.

- The decline has put Brent into negative territory for 2018, down 2.15% on the

year. WTI is still up around 2% on the year.

- Helping to moderate the downside were reports that California will not allow

trapnsport of crude products from new offshore oil rigs through the state in an

apparent attempt to stop the expansion of federal oil and gas leasing.

- MNI technical analysis sees WTI support at $60.75 - High Jan 2 now support,

resistance is seen at $61.96 - Hourly resistance Feb 7.